Marketing Strategies for
Pasture-Based Animal
Products
David S. Conner, Ph.D.
Research Specialist
C.S. Mott Group
for Sustainable Food
Systems
Michigan State University
Overview
Introduction: Commodity versus Niche
Markets
 “Food with a Story”
 MI farmers’ stories
 What Do Consumers Want?



Results from other states
Results from Michigan
Implications
 Conclusions

Introduction
Two basic markets: Commodity versus Niche
Market Commodity
Niche
Comparison
Pricing
“Price-taker”
“Price-maker”
Competitive
Strategy
Low Cost
Producer
Product
Differentiation
Introduction
Bottom Line:
If you want the higher price, you’ve got to
offer something special or different!
And… you’ve got to be able to tell your
consumers why your product is special
“Food with a Story”
SYSCO CEO Rick Schneiders says his
company’s marketing strategy is based
on:
• Memory
• Romance
• Trust
“Romance is the story behind the food’s
production.”
Again…it’s not just producing good food –
it’s about telling its story!
Michigan Farmers’ Stories
What stories are Michigan pasture-based farmers
telling about themselves, their farms and their
products?
How do they describe themselves to consumers?
Interviews with 24 farmers from 16 farms
throughout Michigan (south, west, north, UP)
Conducted fall 2004 and spring 2005
Broad array of products and species
Michigan Farmers’ Stories
Common Themes:
 Animal Welfare (11/16): humane
treatment, decreasing stress
 Ecological Stewardship (9/16)
 Natural Products (11/16): no hormones,
antibiotics, additives; “we eat it too”
 Family Farm Ethic (13/16): quality of life,
affordable price, good relations with
neighbors
Michigan Farmers’ Stories
3/4 of these themes concern HOW the product was
raised (the process) as opposed to WHO raised it
But…
Are these the right selling points?
What do consumers want?
What will they pay for?
What do Consumers Want?
Results from other states…
Consumers have expressed willingness to
pay a premium for pork products with the
following attributes:
• “Pasture-raised” (AR)
• “Environmentally Sustainable” (IA)
• “Natural” (CO)
What do Consumers Want?
Results from other states…
Internet survey by Kerr Center (OK)
Respondents from 4 states: NE, MO, WI, IA
• Almost half say they would pay 10% more
for locally grown meat and chicken
• Large numbers also willing to pay more
for pastured poultry
Caveat: what they say they’ll pay may not
equal what they’ll really pay!
What do Consumers Want?
Results from Michigan
Data Source: The State of the
State Survey, administered by
Michigan State University’s
Institute for Public Policy and
Social Research
Representative sample of Michigan
residents (N=988)
Objective: Identify consumer
demand for and attitudes about
animal product attributes
What do Consumers Want?
Survey Results from Michigan
Questions included:
Importance of the following attributes:
 Humane Animal Treatment
 Antibiotic and Hormone Free
 Raised in Environmentally Friendly Way
 Raised in Michigan
 Raised on Family Farm
 Knowing Farmer
Survey Results from Michigan
Other questions:
 Frequency of Purchase of Pasture Raised
(PR) products
 Reasons for never buying or not buying
more PR
 Belief that PR products are healthier for
consumer
 Demographics: age, income, race, gender,
marital, politics, education, urban
Survey Results from Michigan
What attributes are important to purchase
decisions: measured on five point scale.
1=very important
2=somewhat
3=neither
4=not very important
5=not important
Survey Results from Michigan
Attribute
Very Important
(%)
62.7
Somewhat
Important (%)
28.8
63.2
24.1
64.6
28.2
23.1
29.2
Family Farm
29.2
33.2
Knowing Farmer
16.8
17.3
Humanely
Raised
No antibiotics or
hormones:
Environmentally
Friendly
MI raised
Other Findings…
Frequency of Purchase PR products
Always or most times: 38.7%
Some of time: 35.1%
Rarely + Never: 26.2%
Also , 86 cases of “do not know”
People think they are buying PR
products…but are they?
Other Findings…
Agree that PR products are healthier for
consumers than confinement-based
Strongly Agree: 41.0%
Somewhat Agree: 40.4%
Survey Results from Michigan
Summary of Findings:
How products are raised is more important
then Who raises them
People think they are buying PR products
Healthy perceptions
Implications: what does it all mean?
MI consumers care more about “how” than “who”
 Humane
 Healthy or Natural
 Environment
Pasture-Raised Products have these attributes
MI Pasture-based Farmers include these attributes
in their stories
Lots of potential for education and communication
Caveat: This is a mass, random sample; knowing
your particular consumers and their preferences
is vital
Conclusions
“Niche” implies product differentiation: need to
produce high quality goods and tell the story
How products were raised may be an important
part of your story
Caveat: make sure you make truthful claims: focus
on how it was produced (process) rather than
outcomes (product). Health claims may get you
in trouble.
Get in touch with me if you have any questions,
comments, etc. I want to learn more and help if I
can!
Thank You!
David S. Conner, Ph.D.
C.S. Mott Group for Sustainable Food
Systems
303 Natural Resources Building
Michigan State University
East Lansing, MI
48824-1222
(517) 353-1914
connerd@msu.edu